Internet travel agency Zuji.com expects online deals to form about 20 per cent of its market share in the travel industry in the next five years, thanks to budget airlines, says chief executive Scott Blume.
He said that traditional bricks-and-mortar travel agencies would specialise in specific tour offerings as online transaction had gained market share in recent years.
'We don't think we threaten the offline agents. In fact, they can provide tailor-made services or specialise in dedicated routes,' said Mr Blume.
The Singapore-based online travel agency said online transactions made up less than 10 per cent of the retail travel market. But revenue from online bookings last year grew 80 per cent year on year.
Mr Blume believes online travel transactions will eventually dominate business. In the US, for instance, online deals account for more than 40 per cent of the total market. In Korea, the top 10 travel agents are all online operators.
'It's no doubt online transactions will grow substantially, although they do not yet have a significant portion of business.'
In Hong Kong, Zuji was the second most visited online travel site with a market share of 7.41 per cent in December last year.